Final answer:
Medicare is funded through payroll taxes, premiums, and general revenue. Medicaid and CHIP are used by low-income individuals and families. The ACA aims to increase affordability and accessibility of health insurance and implement comprehensive reforms.
Step-by-step explanation:
Medicare is funded through a combination of payroll taxes, premiums paid by beneficiaries, and general revenue. Payroll taxes are collected from both employees and employers and are used to fund the Part A portion of Medicare, which covers hospital insurance. Premiums are paid by beneficiaries for Parts B and D of Medicare, which cover outpatient services and prescription drugs. General revenue, such as income taxes, is used to cover any funding shortfalls.
Medicaid and the Children’s Health Insurance Program (CHIP) are utilized under specific circumstances. Medicaid provides health insurance to low-income individuals and families, including pregnant women, children, and people with disabilities. CHIP is designed to cover children in families that have income levels that are too high for Medicaid but still cannot afford private insurance.
The Patient Protection and Affordable Care Act (ACA), also known as Obamacare, has two main objectives. First, to increase the affordability and accessibility of health insurance for individuals and families by providing subsidies to help lower-income people afford coverage. Second, to implement comprehensive health insurance reforms, such as prohibiting insurance companies from denying coverage or charging higher premiums based on pre-existing conditions, and requiring coverage of essential health benefits.